Reference no: EM132650518

Problem 1: What is the major difference between a periodic and a perpetual inventory system?

Select one:

a. Under the periodic inventory system, the purchase of inventory will be debited to the purchases account.
b. Under the periodic inventory system, no journal entry is made at the time of the sale of inventory for the cost of the inventory.
c. Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month.
d. All of these choices are correct.

Problem 1: When comparing a merchandising business to a service business, the financial statement that changes the most is the

Select one:

a. balance sheet
b. income statement
c. statement of owner's equity
d. statement of cash flows

Problem 1: When merchandise sold is assumed to be in the order in which the purchases were made, the company is using

Select one:

a. first-in, last-out
b. last-in, first-out
c. first-in, first-out
d. weighted average cost